FCC: ADSL growth sped by cable modems in 2002

Adoption of asymmetrical DSL high-speed Internet services outpaced cable modem deployment in the U.S. during the second half of 2002, thanks to increased broadband competition and consumer demand for lower prices, according to a new report from the FCC.

Adoption of asymmetrical DSL high-speed Internet services outpaced cable modem deployment in the U.S. during the second half of 2002, thanks to increased broadband competition and consumer demand for lower prices, according to a new report from the FCC.

Advanced service ADSL lines increased 52% in the last six months of 2002, compared to a 22% increase in cable modem lines, the FCC said, reversing a trend from the first half of the year. In the first six months of 2002, cable modem deployment grew 55%, whereas ADSL lines increased 35%.

The FCC defines advanced services as those that exceed speeds of 200K bit/sec in both directions, whereas services that provide speeds of 200K bit/sec in at least one direction were classified as high-speed lines.

Approximately 19.9 million U.S. homes and businesses boasted high-speed Internet connections at the end of 2002, according to the FCC, representing a 58% increase for the year. Of the 19.9 million high-speed lines, 13 million provided advanced services, representing a 75% increase in advanced services lines for the full year 2002.

Advanced service ADSL lines increased 105% last year and cable modem connections increased 90%.

At least one ISP believes that the spike in ADSL lines in the second half of 2002 can be pinned on increased competition in the market.

“The fact that DSL adoption greatly outpaced cable modem adoption in the second half of last year belies the Bell companies’ claims that regulations were standing in the way of their ability to compete with cable modem services,” Covad Communications President and CEO Charles Hoffman said in a statement released this week.

But while Hoffman attributed the advance of DSL services to increased competition, Jupiter Research European broadband analyst Ian Fogg said that DSL growth is also benefitting from new technologies that make upgrading exchanges less expensive.

In fact, due to reduced costs, and the continued financial challenges facing many cable modem providers, Jupiter predicts that DSL growth in the U.K. will follow the U.S. lead and outpace cable modem growth in the next year.

The FCC released its report as part of a data gathering program launched in March 2000 to monitor broadband competition and growth.